ANZ discusses NZD outlook and adopts a neutral bias in the near-term but sees a scope to consider playing shorts on crosses in the medium-term.
"Last week we felt that the NZD had the potential to do a little better in the near-term, in part due to positioning and a USD that was looking closer to fully priced; but today we have less conviction in that.
A deteriorating domestic growth picture, together with ongoing concern over trade and global growth make it hard to get too upbeat. But does this see a meaningful break lower against the USD? We’re not so sure, and think the crosses are a better way to play this story," ANZ argues.